The following checklist was designed to inspire ideas that will allow you to fine-tune your data strategies.
1. Are you maximizing your customer information? A data audit of all of the customer data you store will help you understand if you are fully utilizing the information your firm collects on your customers. We all know that customer transaction information is the most valuable set of data available to you. Make sure that all appropriate information is being fed to your marketing database. Is there information in your billing system that you could use for a cross-sell program? Do you receive a feed from customer service when a customer calls to complain (could be a great trigger for a retention/save message)? These are just two examples of how having access to customer behavior could drive a marketing campaign. Again, look at the data assets available to you with an eye towards how the information could positively impact a marketing message and how clever use of this data could add to your bottom-line.
2. Have you done ALL of your research? Are you constantly on the look-out for new lists, hot data that may be new to the marketplace and not yet known by your competitors? This is a vital exercise. Talk to the list managers who specialize in your industry. Use no-charge list search engines (such as the one offered by “Direct” Magazine). There may be new data available that will allow you to better reach your target market.
3. Are you purchasing TOO much data? We’ve seen many direct marketers who are overwhelmed with too much external data available to them. Someone went on a buying spree (the data vendors LOVE that!) and purchased a convenient bundle of 100+ data elements. The problem is that it’s just too much. Database users have trouble cutting through the “noise” and finding those relevant pieces of information that could better drive marketing strategy. Maybe it’s time to evaluate data usage to ensure that what is purchased is being used, that the coverage is significant enough to warrant housing it within the database and that the information is relevant to business goals.
4. Is your data properly integrated so that you can understand your customer and prospect relationships? Understanding the relationships between your customers and prospects is vital. If you understand the full extent of what each client is purchasing from you, you can ensure that you are treating them appropriately. Additionally, if you have an idea of what they aren’t purchasing from you, you can cross-sell and up-sell them more effectively. There are many data integration tools available from the leading data processors. While the offerings can be complex, it’s fairly simple to test to see which may bring out the hidden relationships in your data.
5. Have you considered the use of credit data? The use of credit data is ideal for lessening the risk that your firm takes on in direct marketing campaigns. And, it’s not only financial mailers who can benefit. If you’re a consumer mailer, all you need to do to access rich credit info is to be able to make a firm offer of credit to your prospect. And, if you’re a b2b mailer, it’s even easier—there are no restrictions on the use of business credit data for targeting. We think it’s a “no-brainer” NOT to mail only to credit-qualified businesses. Finally, be clever in using the data—there are ways that the credit bureaus can provide trigger-based information—highly targeted data that reaches prospects exactly when they’re in the market to buy. If you haven’t considered using credit data lately, perhaps it’s time to take another look.
6. When’s the last time you evaluated and/or renegotiated your net name arrangements? Are you in a rut with your list buys? Have you started to take for granted that, for example, List A will only offer you an 80% net name arrangement, and List B doesn’t offer one at all? If so, take the time to negotiate with your list owners (or ask your broker to take on this task). It’s a competitive world out there in the list business. List owners may be receptive to a new net name arrangement just to continue to ensure that you mail their file. Plus, they’re getting used to the creative arrangements that are being called for when their data is imported to a prospect database environment. In a nut-shell, it may be worth a few phone calls to ensure that you have the best deal available for each of the lists that you mail frequently.
7. Is it time to move to a prospect database environment? As mentioned above, list owners are increasingly more willing to extend creative pricing and usage arrangements. They are more willing to allow you to house their files in your marketing database. Perhaps it’s time for you to consider moving your campaign-based list processing to a marketing database environment. Several leading database firms have recently introduced low-entry database systems to meet the need of volume mailers moving from a campaign-based approach to a database environment. There are so many benefits of a marketing database—the ability to track responses, quick access to promotional history, the base for analytics, etc. etc. Again, if you haven’t explored the database option, it’s time.
8. Have you properly evaluated your compiled data sources? It’s easy to assume that all of the compiled data is the same (and, let’s face it, it’s all pretty similar). But, are you taking the time to understand the various strengths and weaknesses of each company? Maybe it’s time to consider several sources? Are you maximizing their extensive analytical staff to ensure that your data investment is on target? The large compilers know that they are competing for your business. Make sure that you leverage your buying power with them, and you’ll definitely reap the benefits of better data at a better price.
9. Are you collecting the right data? As we move into a permission-based environment, it’s key that you start asking your customers how they want to be communicated with. Of course, then, you need to adhere to these wishes. Perhaps it’s time to evaluate your customer and prospect interactions. Are you asking them for e-mail addresses and (of course) getting their permission to allow you to send them e-mail? Are you clearly giving them the opportunity to opt-out of your outbound telemarketing campaigns? Have you asked them if they’d prefer to hear from you in a language other than English? We believe it’s time to start this type of dialog so that you are prepared as we move into a world where it will be imperative to talk to our customers and prospects with the appropriate message and through their preferred channel. Take the time now to build the infrastructure, and you’ll be one step ahead of your competitors.
Data and the effective use of data is a critical piece of the direct marketing mix. Consideration of the above nine questions should give you a solid foundation to evaluate your current data strategies.
To learn more about this author, visit Nancy Arter's Website.
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